UPDATE: Credit Suisse Downgrades NII Holdings on More Challenging Outlook
In a report published Monday, Credit Suisse analyst Andrew T. Campbell downgraded the rating on NII Holdings (NASDAQ: NIHD) from Neutral to Underperform, and lowered the price target from $5.00 to $4.50.
In the report, Credit Suisse noted, “We are reducing our target price on NIHD from US$5 to US$4.50/share, implying downside of 20%, and reducing our rating from Neutral to Underperform. We are incorporating a more challenging outlook for both top line and margins for upcoming quarters on the basis of weaker local currencies, lower net adds, and higher opex during the ongoing transition from iDEN to 3G. We believe NIHD still faces considerable obstacles to turn the corner towards accelerated growth and profitability. These obstacles include Sprint's iDEN's shutdown in the US (pressuring Mexico churn), less extensive 3G coverage than competitors during this transition phase, leverage levels that impede a more aggressive build out, and negative FCF generation at least through next year.”
NII Holdings closed on Friday at $5.63.
Latest Ratings for NIHD
|Mar 2014||Wells Fargo||Downgrades||Outperform||Market Perform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.